Utah Contractor Practice Exam

If changes are made to a bid before it is due, what is issued?

1. New contract

2. Mediation

3. Arbitration

4. Addendum

The correct answer is: Addendum

When changes are made to a bid before it is due, an addendum is issued. An addendum serves as an official modification or addition to the original bid documents. It communicates the changes or clarifications that bidders need to consider when preparing their bids. Issuing an addendum ensures that all potential bidders receive the same updated information, which maintains fairness and transparency in the bidding process. This is crucial, as it allows all interested parties to adjust their proposals accordingly and submit bids that are in line with the latest project requirements or changes. The use of an addendum helps prevent misunderstandings and ensures that everyone is operating from the same set of information leading up to the due date for bids. In contrast, the other options such as a new contract, mediation, or arbitration are not applicable in this context. A new contract would not be relevant until a bid is accepted; mediation and arbitration are conflict resolution processes that occur after disputes arise, not during the bidding phase.